Bank of Japan policymakers divided on shock stimulus

clock

Bank of Japan board members were divided on the central bank's decision to unleash surprise stimulus measures at the end of October, minutes of their meeting have revealed.

Four out of nine policymakers opposed the decision to step up annual government bond purchases from Y50trn to Y80trn. Their concerns included the limited additional impact of further stimulus and the impact of a declining yen on small businesses.

However, the argument for more stimulus ultimately prevailed, with five members voting for the move.

They were led by Governor Haruhiko Kuroda, who has acted as a strong ally for Prime Minister Shinzo Abe's three-pronged 'Abenomics' economic rejuvenation programme.

Factors in favour of action included the need to prevent "a deflationary mindset" as oil prices fell.

"They stated that, to pre-empt manifestation of such risk and to maintain the improving momentum of expectation formation, the Bank should decide additional monetary easing at this time," noted the minutes.

In the event, the Bank of Japan's surprise stimulus sent the Nikkei soaring and caused the yen to plummet. But just two weeks later, data revealed Japan had slid back into recession.

More on Investment

Friday Briefing: A big week but not the one we were expecting

Friday Briefing: A big week but not the one we were expecting

Friday Briefing

Patrick Brusnahan
clock 16 February 2026 • 3 min read
Stories of the week: Schroders, DIY investment, and Saba

Stories of the week: Schroders, DIY investment, and Saba

The biggest stories from the world of investment and asset management this week

clock 13 February 2026 • 1 min read
MPS allocation review: Risk-on pays off and diversification from US delivers

MPS allocation review: Risk-on pays off and diversification from US delivers

Timeline 0.09% Tracker - 60 most recommended portfolio

Mike Turner
clock 11 February 2026 • 4 min read
Trustpilot